MISSISSIPPI INVENTIONINDEX | JANUARY 2026

January 2026: 0.77% (D- grade)

Mississippi inventionINDEX January 2026: 0.77% (D- grade)

The inventionINDEX measures innovation output by comparing GDP growth with patent production growth. 

Anything over C grade is positive sentiment; anything under C is negative outlook/sentiment. Using that sentiment, it is possible to observe trends over time, and also compare states/countries. In doing so, we can predict which states have the best chance to recover economically from the pandemic (or any other economic incident that may occur).

Mississippi inventionINDEX Scores – Last 12 months

The Mississippi inventionINDEX score for January 2026 sits at a modest 0.77% resulting in a D- rating. This performance represents a noticeable regression from the relative stability observed during the final quarter of 2025, where the score held steady at 1.02%. While the index briefly surged to a B+ in September 2025 with a score of 1.27%, the subsequent decline suggests a struggle to maintain upward momentum. The current figure aligns more closely with the historical lows of the past five years rather than the peaks, indicating a period of stagnation in the state’s inventive output as the new year begins.

Examining the sixty-month horizon reveals a landscape of significant volatility within the state’s innovation metrics. Mississippi reached its zenith in October 2023 and May 2022, achieving scores of 1.60% and prestigious A+ ratings. In contrast, the index plummeted to its nadir of 0.52% as recently as June 2025 and previously in October 2021. The January 2026 score of 0.77% resides in the lower quartile of this historical range. This positioning highlights a persistent inability to recapture the innovative vigor seen in previous years, reflecting a cyclical pattern where brief periods of excellence are often followed by sharp corrections.

Achieving a higher grade within the inventionINDEX yields substantial benefits for the local economy. An A+ or B level rating signifies a robust environment for intellectual property development, which serves as a primary driver for venture capital investment and high-tech job creation. When the score rises, it indicates that Mississippi is effectively leveraging its research institutions and entrepreneurial talent to produce valuable patents and technological breakthroughs. Such a climate fosters a self-sustaining ecosystem of growth, attracting outside talent and encouraging local inventors to remain within the state to scale their operations.

Conversely, the prevalence of D and F ratings carries serious negative implications for the state’s long-term competitiveness. A score of 0.77% or lower suggests a thinning pipeline of new ideas and a potential exodus of creative capital to more innovative regions. If these low scores persist, the resulting decline in patent activity can lead to a sluggish manufacturing sector and a lack of modern industry development. Addressing the underlying causes of these frequent dips into the failing range is essential to prevent a cycle of economic underperformance and to ensure that the state remains a relevant participant in the broader national landscape of technological advancement.

Discussion:

In January, the Mississippi inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast to the prior 12 months, which experienced a slight downward trend. 

As the economy continues to stabilize in the post-pandemic era, it remains uncertain whether any backlog of applications still exists or if the department has returned to normal processing timelines. The inventionINDEX could also be affected by lingering consequences from the pandemic, such as company closures, reduced workforces, and limited R&D capabilities, which may still be impacting current operations.

Learn More:

Are you thinking of patenting any of your bright ideas? Did you know your research work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? To find out more, please check out our free online eligibility test.

Swanson Reed’s Mississippi office provides R&D tax credit consulting and advisory services to Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Meridian, Tupelo, Greenville, Olive Branch, and Horn Lake.

Feel free to book a quick teleconference with one of R&D tax specialists if you would like to learn more about R&D tax credit opportunities.

Who We Are:

Swanson Reed is the largest Specialist R&D tax credit advisory firm in the United States. With offices nationwide, we are one of the only firms globally to exclusively provide R&D tax credit consulting services to our clients. We have been exclusively providing R&D tax credit claim preparation and audit compliance solutions for over 30 years. 

Swanson Reed hosts daily free webinars and provides free IRS CE and CPE credits for CPAs.  For more information please visit us at www.swansonreed.com/free-webinars or contact your usual Swanson Reed representative.